Advice needed on partnering with another investor - Posted by sophmore investor

Posted by Ronald * Starr(in No CA) on August 15, 2003 at 20:43:19:

Sophomore Investor-------------

Well, are some of them “keepers?” I am amazed that all of the units would be vacant. What condition are they in? Could they be rented as is?

It is hard to offer suggestions without more of a idea of what you are talking about.

For instance, are they all single family properties? Because I don’t think lease-option makes sense for properties with more than one unit.

Watch out, the way you have presented this, you are acting as a real estate licensee without having a license. You need to get ownership of the properties or the right to ownership so you become a principal. Either you get a deed or you have a slowclose contract or option to purchase. Something that you can assign to another investor.

Before you go further, I’d suggest spending some time finding out what the market is from investors for properties like this. Talk to real estate investors in the area where the properties are. Talk to agents who have listings of similar properties. There may not be any demand. If not, don’t waste time trying to flog a dead horse.

Remember: don’t make the seller’s problems your problems.

Good Investing******Ron Starr************

Advice needed on partnering with another investor - Posted by sophmore investor

Posted by sophmore investor on August 15, 2003 at 17:40:43:

Hello,

I’m speaking with a landlord who currently owns some investment properties that he is looking to unload. All properties are currently vacant so he needs to stop the bleeding ASAP. The problem is the market is very slow around these parts - at least for higher end properties, which he owns - and he doesn’t want to hassle of being a landlord anymore. If he puts the properties on the market, it’s a safe bet they’ll sit vacant until the Spring, and that’s not an option. So I suggested we might partner on the deals and I would do the marketing, pre-qualification, and all the landlording requirements until the properties are sold. FYI - my strategy is to market the homes as lease/purchase and OWC. My question is, how would we go about structuring such an agreement? Property management agrement whereby I receive some of the cash flow and profits on the back end? Lease/purchase where I purchase the property for X and have the right to sell the property for Y? Hmmmm…that’s an idea. I might have just answered my own question. At any rate, any suggestions you have are greatly appreciated.

Thanks in advance!